What Is Practical Intelligence? Why Street Smarts Matter More Than You Think

Ever met someone who aces schoolwork but struggles to navigate real-life situations? Or maybe you know that friend with zero fancy degrees who seems to magically solve everyday problems?

Then you've probably wondered how intelligence works and if there's more to it than numbers from conventional IQ tests.

It turns out that there is, and the description for it is the acknowledgment and recognition of practical intelligence in action. You may have also heard this type of intelligence complimented as "common sense" or simply "street smarts." These terms get thrown around a lot, and they're definitely related to what we're about to explore.

But are they exactly the same? Let's find out.

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What is Practical Intelligence?

Practical intelligence, as defined in psychology, refers to a skill that allows people to function in real-life situations and solve practical problems, often without formal instruction or education. Unlike traditional measures of intelligence that focus on academic or cognitive abilities, practical intelligence emphasizes the capacity to navigate complex tasks, manage interpersonal relationships, and succeed in practical, real-world scenarios.

Practical intelligence is all about using your knowledge and skills to navigate everyday challenges. It's about being resourceful, adaptable, and able to think on your feet. It's the kind of intelligence that helps you fix a flat tire, manage your finances on a budget, or smooth-talk your way out of a sticky situation (hopefully not too often!).

Individuals with high practical intelligence exhibit strong problem-solving skills, adaptability, social acumen, and the ability to apply knowledge and skills in a diverse context to achieve desired outcomes. This form of intelligence is often associated with practical experience, common sense, and the ability to thrive in dynamic environments where quick decision-making and resourcefulness are paramount.

In a very real sense, it is a form of intelligence that has wider applicability compared to analytical or creative intelligence.

Aspects of Practical Intelligence

Practical intelligence isn't a one-size-fits-all kind of deal. Sternberg highlights it as a key component of his triarchic theory, arguing that there's more to being smart than just acing tests.

Practical intelligence, according to Dr. Sternberg, involves three key aspects: adapting to the environment, shaping the environment, and selecting a new environment.

• Adapting to the Environment: Adaptation involves adjusting your behavior and strategies to fit the context you're in. Imagine moving to a new country; practical intelligence helps you adapt to the new culture, navigate unfamiliar surroundings, and learn the local social norms.
• Shaping the Environment: This facet emphasizes influencing your surroundings to suit your needs. Maybe you're unhappy with your current job. Practical intelligence allows you to have a productive conversation with your boss to negotiate changes or explore new opportunities within the company.
• Selecting a New Environment: Sometimes, the best solution is to change your environment altogether. Practical intelligence helps you recognize when a situation is no longer working for you and empowers you to decide to move on and find a better fit.

Although not explicitly included in Sternberg's theory, other facets of practical intelligence can come into play, such as:

• Social intelligence: Understanding social cues, navigating interpersonal relationships, and being able to communicate effectively are all crucial for success in life. These fall under the umbrella of practical intelligence, too. It's a vital aspect of being able to work well with others and build strong connections.
• Automation: This includes the ability to perform tasks with minimal cognitive effort, freeing up mental resources for more complex tasks. Automation can also involve streamlining processes and finding efficient ways to hit your goals.

Examples of Practical Intelligence in Action

Practical intelligence can manifest itself in different ways, depending on the context and an individual's strengths and personality. For example, someone who is mentally strong is likely to possess a great deal of practical intelligence.

So, if you are wondering how it is used in the real world, consider the following examples as demonstrated in various occupations and life situations. People with high levels of practical intellect often excel in these jobs and domains:

Parenting

As a parent, you're constantly faced with new challenges, from sleepless nights to tantrums to navigating school systems. Practical intelligence comes in handy when you need to make quick decisions, find creative ways to solve a conflict, and adapt your approach to different situations and children. 

Successful parenting also involves a deep understanding of your child's unspoken needs and emotions, which is essential to being an effective caregiver who nurtures happiness in their children. Any mother who has had to multitask to get things done — and is successful at it without pulling her hair out — epitomizes what it means to be “practically intelligent.”

Entrepreneurship

Common sense and street smarts are some of the most important traits to acquire when you want to deal effectively with people, manage resources, and get things done. After all, you not only need to navigate complex financial, operational, and interpersonal challenges, but you also need to constantly adapt and find creative solutions to succeed in the competitive world of business. 

Being practically intelligent can give you a significant edge in doing that. For instance, leveraging data analytics and insights can empower decision-making processes, enhance strategic planning, and be adept at spotting opportunities when they arise.

Emergency Services

An emergency calls for an immediate reaction. However, in extreme situations, a crisis can flood the brain with emotions and stress, making it difficult to think clearly. We all react differently to stress. 

Some people may freeze, and others have an instinctive reaction that may or may not be appropriate. Although it does not require a pragmatic analysis of the situation, staying calm, focused, and responding swiftly and efficiently are good examples of Sternberg's practical intellect.

Customer Service

Customer service is all about understanding the needs and concerns of others, adapting to their communication style, and finding solutions that leave them satisfied. Practical intelligence allows customer service representatives to excel in this role by problem-solving while maintaining positive relationships with customers.

Job Interview

Job interviews can be head-scratching affairs for most people. On the one hand, the goal is to create a better impression and be offered a job, but on the other hand, trying too hard can make you come across as phony and insincere. 

To make matters even worse, some interview techniques include oddball questions that do not seem to have any significance on the job requirements. Other strategies deliberately try to encourage candidates to lie or exaggerate their achievements.

However, being able to decipher the goals of the interview and their questions, combined with quick and effective thinking about how some responses are to be given, is a second-by-second exercise in practical intelligence.

Conflict Resolution

A high level of practical intellect helps most conflict resolution specialists develop common-sense solutions to even the most challenging problems. While analytical and creative intelligence help to understand the root causes of conflict, ultimately, practical intelligence is required to devise feasible and effective solutions. 

For instance, assume you're dealing with young people who have been in a fight; analytical intelligence may help you understand the root causes of their conflict and how to fix it long-term. But right now, practical, common-sense solutions are needed to teach them that there is a different way to solve conflicts.

How Can You Develop Practical Intelligence?

Of course, you might be wondering if practical intelligence can be developed or improved. The answer is yes! Even if this type of intelligence has never been your strong suit, you can become a street-smart person by focusing on the following skills and attitudes:

Take Stock of Your Strengths and Weaknesses

Like everyone else, you have areas of strength and weakness in your life. It's important to recognize and accept them so you can focus on developing skills that need improvement. 

The knowledge can also be used to identify ways in which one can utilize his strengths to develop other areas of proficiency. The key objective is to also expand your expertise so that you have a broader range of knowledge and skills to draw upon when facing new challenges.

Reframe Problems as Opportunities

Sometimes, we go through life believing that we do not have much control over the problems we encounter. That's unfortunate since every experience — whether good or bad — has the potential to teach us something valuable. 

And all of those experiences can add to your store of practical intelligence, especially if you strive to learn from them. This mindset shift can help you approach problems with a more positive and proactive attitude.

Practice Adaptability

One of the hallmarks of practical intelligence is the ability to adapt quickly and effectively to new situations. To develop this skill, try exposing yourself to different environments and challenges — even those that make you uncomfortable. Doing so will help you get comfortable with change and build confidence in your problem-solving abilities.

Stay Calm Under Pressure

You should also understand that your practical thinking abilities will be tested most when you're faced with high-pressure situations. When things go wrong, it's important to maintain a clear head and take all the time you need to make logical decisions based on the information that is available at hand. 

Practice deep breathing, mindfulness meditation techniques, or other calming strategies to help you stay composed during difficult moments.

Seek Feedback and Be a Lifelong Learner

Developing practical brilliance is an ongoing process. The more you learn and expose yourself to new experiences, the more proficient you become in making practical decisions. Seeking feedback from others can also help you identify different areas for improvement and gain valuable insights on how to approach challenges differently. 

Always strive to be a lifelong learner with an open mind and a willingness to try new things. After all, there is no limit to how much we can learn and grow.

Which Test Is Used to Measure Practical Intelligence?

Of course, there isn't a single universally accepted test for assessing practical intelligence. However, there are some interesting approaches that come close:

Sternberg’s Triarchic Abilities Test (STAT)

The Triarchic Abilities Test, developed by Sternberg, is a strong contender. The STAT, particularly the Level H version, attempts to access all the three facets of practical intelligence outlined by Sternberg: adaptation, shaping, and selecting. It presents scenarios that might be encountered in daily life and asks the test-taker to choose the response that best reflects how an expert would handle the situation.

While the STAT is a valuable tool, some research suggests a general intelligence factor ("g") might be more dominant than the separate abilities it measures. Still, it offers a window into your practical problem-solving skills.

Tacit Knowledge Inventories

These questionnaires target a key component of practical intelligence: understanding unspoken rules and best practices within a specific field. Imagine a salesperson taking an inventory that assesses their grasp of customer psychology and negotiation strategies. 

The key here is that tacit knowledge is a core component of practical intelligence, according to Sternberg. By measuring this "unwritten knowledge," these inventories can provide insights into practical abilities.

Performance-Based Assessments

Imagine a scenario where you're tasked with assembling a complex piece of furniture with limited instructions. Or perhaps you're presented with a series of real-world problems and asked to come up with solutions. These types of assessments directly observe an individual's problem-solving approach, resourcefulness, and ability to adapt under pressure — all hallmarks of practical intelligence.

While formal tests can be helpful, sometimes, the best way to assess practical intelligence is also through everyday observation.

Outsmarting Life's Curveballs is Not Just for Book Smarts

Practical intelligence may not get as much attention as other types of intelligence, but it's more than just trivia or textbook knowledge. It's the ability to combine knowledge, experience, and resourcefulness to navigate unexpected situations, solve problems creatively, and adapt to changing circumstances.

The good news is that practical intellect isn't a fixed trait. It can be developed and improved with practice. Remember, there is more to success than just intelligence (but that too can be improved). 

So next time life throws you a curveball, put on your superhero cape, tap into your practical brains, and outsmart it!  

Recommended Reading

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• Art of Calm: Science-Based Ways to Feel Calmer  
• Can You Have a High IQ and Make Dumb Decisions?